ExpertHard1 markShort Answer
Task 5: Plan and manage budget and resourcesearned value managementcost performanceCPIproject metrics
PMP · Question 19 · Task 5: Plan and manage budget and resources
A project has the following earned value data at the end of month 8:<br/>- Budget at Completion (BAC): $800,000<br/>- Planned Value (PV): $480,000<br/>- Earned Value (EV): $400,000<br/>- Actual Cost (AC): $450,000<br/><br/>Calculate the Cost Performance Index (CPI). Round to two decimal places and enter numbers only (e.g., 0.89).
A project has the following earned value data at the end of month 8:<br/>- Budget at Completion (BAC): $800,000<br/>- Planned Value (PV): $480,000<br/>- Earned Value (EV): $400,000<br/>- Actual Cost (AC): $450,000<br/><br/>Calculate the Cost Performance Index (CPI). Round to two decimal places and enter numbers only (e.g., 0.89).
How to approach this question
Calculate CPI using the formula: CPI = EV / AC. Divide Earned Value by Actual Cost and round to two decimal places.
Full Answer
Cost Performance Index (CPI) measures cost efficiency by comparing earned value to actual costs. A CPI of 0.89 indicates the project is over budget, getting only $0.89 of value for every $1.00 spent.
Common mistakes
Students sometimes confuse CPI with SPI formulas or forget to round to the specified decimal places.
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